– Nikhil Mudgal, Founder-CEO, Lorien Finance

Studying abroad is a dream-come-true for many learners in India. According to recent media reports, around 1.33 million students were pursuing overseas education as of 2024.

However, securing the finances for studying abroad can be challenging for the middle-class or even upper-middle-class families due to liquidity issues or lack of collateral. Therefore, study abroad loans have become increasingly popular, helping learners realise their aspirations, although traditional banking routes may not be suitable for everyone. 

Student loan sanctions from traditional banks often depend on the choice of the university and the programme, wherein established disciplines, standard-duration courses (such as MBA programmes, master’s and bachelor’s degrees), and elite universities are prioritised. This is where many students may not fit the criteria, especially if they are considering overseas programmes to explore new-age disciplines.

Student Loans & the Indian NBFC Landscape

Fortunately, India has, over the years, seen a boom in the number of Non-Banking Financial Companies (NBFCs). Moreover, NBFCs, according to a recent CRISIL report, have seen a growth in education loans. The report mentions that the sector’s expected asset under management (AUM) may cross ₹60,000 crore from ₹43,000 crore last year, clocking a massive spike in loan disbursals. In fact, the reported ₹43,000 crore figure is the culmination of 80 percent and 70 percent growth in AUM in FY 2023 and FY 2024, demonstrating how several borrowers have increasingly turned to NBFCs when it comes to international student loans. 

Considering NBFC Student Loans? A Few Key Things to Remember

NBFCs are game-changers for student loans as their disbursal process is often faster than traditional banks. These private lenders are also relatively less selective when it comes to the course or the university, offering learners and their families a great deal of flexibility. 

Irrespective of the lender, the borrower should be mindful of the interest rates before taking out a loan. Hence, it is important to compare the loan details —such as tenure, net payable amount, and terms and conditions — with one’s prospective income and lifestyle at length before finishing the formalities around the loan. Given that this analysis is easier said than done, top education loan aggregator platforms, such as Lorien Finance, prove to be invaluable.

Making Study Abroad Loans Borrower-Friendly: Lorien Finance’s Mission

Focused on making study abroad more approachable for students, Lorien Finance has partnered with several financial bodies, private as well as public. Keeping in mind the financial needs of the student, Lorien Finance offers end-to-end guidance in selecting the lender and assists in other key challenges associated with foreign education. 

Some of these additional challenges where Lorien Finance saves the day include booking English proficiency tests, arranging accommodation, getting placement, and securing essentials: Forex, insurance, foreign bank and GIC accounts, debit and credit cards, and international SIM cards.

Lorien Finance’s Guidance in Lending Partner Selection

Analysing the financial profile of the learners, Lorien Finance handholds them in choosing the lending partner and supports them every step of the way. With fast, hassle-free online application process and dedicated loan expert support, Lorien services have been specifically designed with a student-centric approach.

For applicants with a strong academic and financial profile, Lorien leverages its network of public bank partners to help foreign education aspirants get a low-interest loan. However, some learners may be looking for collateral-free or cosigner-free loans. In such scenarios, the education loan aggregator connects students with trusted international and private lenders, ensuring that the learners can find their education without the usual friction.

It is important to note that public banks generally charge lower interest rates but don’t have coverage for other costs. Alternatively, if the fee must be paid urgently, then private lenders may be suggested due to their disbursal speed.

Private lenders may be ideal fo those who are looking for extensive coverage for all the essential study abroad financial tools, including the programme fees. Also, while Lorien’s private partners may charge relatively higher interest rates compared to public players, the interest rate is still competitive due to their partnership with the NBFC.

Salient Feature of Lorien Finance: International Funding & Student Loans

Lorien offers to study-abroad aspirants the option for foreign-currency loans thanks to its collaboration with 17+ global lenders, including public banks, private NBFCs, and international financial institutions. This facility helps the borrower save on foreign exchange fees and be immune to currency volatility.

Lorien Finance’s Comprehensive Support

Lorien goes beyond just loans; it helps students understand the true cost of studying abroad, factoring in tuition, living expenses, emergency funds and more. This ensures they borrow the right amount at the best possible interest rate, avoiding both fund shortages and overborrowing. Depending on the applicant’s profile and the loan terms, some international lending partners may also offer an education loan at interest rates as low as 3.39 percent.

As a true one-stop solution, Lorien supports students across every major milestone of their study-abroad journey. Whether it’s securing the right education loan, finding accommodation, preparing for standardised tests, or navigating complex visa requirements, Lorien brings all essential services under one roof. With expert guidance at every step, students can focus on their goals while Lorien takes care of the rest. Lorien also simplifies scheduling proficiency tests like TOEFL/IELTS. 

To wrap up, it suffices to say, Lorien doesn’t just strive to help students secure study abroad loans but it also plays a key role in helping learners smoothly transition to their study destination.

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